In 2013, the Central Bank revoked licenses of 32 Russian banks. Dmitry Akopov, CEO of recruitment consulting company Jacobson Partners believes that the dismissal of a large number of bank employees is only beginning to affect the Russian labor market.

Middle management employees from private banks have already started their search for work, but jobless executives are not very keen on finding employment. Rather, they prefer to take a break until completion of the official liquidation process, also in the hope that the situation in the banking sector or the economy as a whole will improve.

Besides, it will not be easy for senior executives to find a new job in the open market. If in 2008-2012 financially insolvent players were removed from the market and licenses were revoked predominantly for failure to comply with bank standards and the lack of capital, now it happens on legal grounds: for violation of anti-money laundering laws and questionable transactions having an adverse effect on the reputation of managers of such organizations. When interviewing candidates from liquidated banks potential employers could question the degree of their involvement in the process. It is not surprising that some candidates are willing to consider offers with lower salaries.

Most banks do not disclose the number of employees, so the number of jobless bank employees after the liquidation of banks can be assessed only approximately. According to the recruitment company Jacobson Partners, given the number of credit institutions and the fact that there are large banks on the list of those 18 which lost their licenses in the 4th quarter of 2013, this number might amount to 12,000-15,000 people. About 7,000 of them reside in Moscow. Moreover, one should not exclude the possibility of jobless bankers migrating from regions (Tula, Kaliningrad, Smolensk regions) to Moscow and St. Petersburg.

Banks can take advantage of the situation and try to replace their staff with workers who entered the market. However, according to our estimates, the growth of tangible qualities of the hired candidates who will be able to effectively refresh the ranks of bank employees will not be observed. Furthermore, revocation of licenses and other developments in the financial market may partly affect the behavior of active employees. According to Jacobson Partners, their motivation to keep their places could grow. Nevertheless, the employer’s awareness of the fact that the market has enough skilled bankers does not mean that existing loyal employees need to be replaced with those on the street.

The Central Bank's revocation of licenses has stirred up the market, but, in our opinion, this effect is mainly caused by their surprise and speed. There would be really serious consequences for the market if top 50 banks are affected.

According to our estimates, the revocation of bank licenses affects salaries and incomes least of all. Because the main driver of income of banking specialists is still the economic situation in the country as a whole and the possibility of development of the banking sector. According to some experts, the decrease in the average salary for financial vacancies for 2013 was 6.2%. Salary expectations of applicants have also become lower, by about 8%. The results of operations, including those of major banks, and the total recovery of the banking system set a trend to optimize costs, primarily personnel costs.

Indicative in this respect was the step taken by the Central Bank: a third of its employees may lose their jobs in 2014. As a result of re-certification of regional employees up to 20,000 people run the risk to be made redundant. Also, the Central Bank changes the remuneration system, tying it directly to performance.

Earlier, Sberbank announced its plans for 2014-2018 to reduce the number of personnel from 250,000 to 220,000 and CEO of VTB Andrey Kostin announced in January that in 2014 personnel expenses in the parent bank and investment companies will be reduced by 15%. Recently, Uralsib bank announced about reduction of personnel costs and introduction of a new quality assessment system explaining the need for such measures by failure to meet planned financial results, as well as the fact that performance indicators and quality of business are significantly behind the average.

Read more: www.kommersant.ru/doc/2425551.